Productivity Loss and Misallocation of Resources in Southeast Asia
This paper examines within-sector resource misallocation in three Southeast Asian countries -- Indonesia, Malaysia, and Vietnam. The methodology accounts for measurement error in revenues and costs. The firm-level evidence suggests that measurement...
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World Bank, Washington, DC
2020
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| Online Access: | http://documents.worldbank.org/curated/en/988961606749814811/Productivity-Loss-and-Misallocation-of-Resources-in-Southeast-Asia http://hdl.handle.net/10986/34838 |
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okr-10986-348382022-09-20T00:11:06Z Productivity Loss and Misallocation of Resources in Southeast Asia de Nicola, Francesca Nguyen, Ha Loayza, Norman PRODUCTIVITY RESOURCE ALLOCATION ECONOMIC DISTORTION This paper examines within-sector resource misallocation in three Southeast Asian countries -- Indonesia, Malaysia, and Vietnam. The methodology accounts for measurement error in revenues and costs. The firm-level evidence suggests that measurement error is substantial, resulting in an overestimation of misallocation by as much as 30 percent. Nevertheless, resource misallocation across firms within a sector remains large, albeit declining. The findings imply that there are considerable potential gains from efficient reallocation -- above 80 percent for Indonesia and around 20 to 30 percent for Malaysia and Vietnam. Private domestic firms and firms with higher productivity appear to face larger distortions that prevent them from expanding. 2020-11-30T22:08:41Z 2020-11-30T22:08:41Z 2020-11 Working Paper http://documents.worldbank.org/curated/en/988961606749814811/Productivity-Loss-and-Misallocation-of-Resources-in-Southeast-Asia http://hdl.handle.net/10986/34838 English Policy Research Working Paper;No. 9483 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper East Asia and Pacific Indonesia Malaysia Vietnam |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
PRODUCTIVITY RESOURCE ALLOCATION ECONOMIC DISTORTION |
| spellingShingle |
PRODUCTIVITY RESOURCE ALLOCATION ECONOMIC DISTORTION de Nicola, Francesca Nguyen, Ha Loayza, Norman Productivity Loss and Misallocation of Resources in Southeast Asia |
| geographic_facet |
East Asia and Pacific Indonesia Malaysia Vietnam |
| relation |
Policy Research Working Paper;No. 9483 |
| description |
This paper examines within-sector
resource misallocation in three Southeast Asian countries --
Indonesia, Malaysia, and Vietnam. The methodology accounts
for measurement error in revenues and costs. The firm-level
evidence suggests that measurement error is substantial,
resulting in an overestimation of misallocation by as much
as 30 percent. Nevertheless, resource misallocation across
firms within a sector remains large, albeit declining. The
findings imply that there are considerable potential gains
from efficient reallocation -- above 80 percent for
Indonesia and around 20 to 30 percent for Malaysia and
Vietnam. Private domestic firms and firms with higher
productivity appear to face larger distortions that prevent
them from expanding. |
| format |
Working Paper |
| author |
de Nicola, Francesca Nguyen, Ha Loayza, Norman |
| author_facet |
de Nicola, Francesca Nguyen, Ha Loayza, Norman |
| author_sort |
de Nicola, Francesca |
| title |
Productivity Loss and Misallocation of Resources in Southeast Asia |
| title_short |
Productivity Loss and Misallocation of Resources in Southeast Asia |
| title_full |
Productivity Loss and Misallocation of Resources in Southeast Asia |
| title_fullStr |
Productivity Loss and Misallocation of Resources in Southeast Asia |
| title_full_unstemmed |
Productivity Loss and Misallocation of Resources in Southeast Asia |
| title_sort |
productivity loss and misallocation of resources in southeast asia |
| publisher |
World Bank, Washington, DC |
| publishDate |
2020 |
| url |
http://documents.worldbank.org/curated/en/988961606749814811/Productivity-Loss-and-Misallocation-of-Resources-in-Southeast-Asia http://hdl.handle.net/10986/34838 |
| _version_ |
1764481761660633088 |